Ocean-energy solutions provider Ocean Power Technologies (NASDAQ:OPTT) strives to provide next-generation electric power and real-time data communications for remote offshore and sub-sea applications for a variety of clients. It’s a very niche market, and there aren’t many ways to take a position besides investing in OPTT stock.
One great thing about OPTT is that it’s easily affordable for most investors, even if they have a small account. And as we’ll soon discover, the share price has become more attractive in recent weeks.
Does this mean that Ocean Power Technologies is having problems? Not at all. If anything, the company’s flagship product, the PowerBuoy Surface Surveillance Solution, remains a mainstay for some agencies and other organizations seeking reliable offshore power and monitoring.
Indeed, Ocean Power Technologies has a business connection with a very important client in the defense-tech sector. And so, a recently announced arrangement should convince any skeptic of Ocean Power Technologies’ standing as a go-to provider of novel ocean energy solutions.
OPTT Stock at a Glance
The onset of the novel coronavirus put a dent in OPTT stock during 2020’s first half. Without a doubt, the global pandemic played a role in pushing the stock down to its 52-week low of 34 cents in March.
After that, the bulls definitely took control of OPTT stock. In fact, they even managed to lift the share price to its peak of $3.72 in October. Understandably, some onlookers might have expressed valuation-related concerns after that massive run-up.
Subsequently, the stock price retraced below the $3 and $2 levels in recent weeks. As of Nov. 10, OPTT is a relative bargain at $1.61 per share.
Traders should keep this price action in perspective. Early October’s parabolic move in OPTT stock was too much, too fast. Today, investors have a chance to turn back the clock and own the shares at a more favorable price point.
Long Work History
There are few, if any, better clients to have than the U.S. government. As long as the government continues to tax the citizens and spend money, it can be a source of practically endless revenues.
OPTT stock holders might already know that the company has a governmental client. Last year, it garnered a contract award from the United States Navy to develop a tech-infused buoy mooring system.
This was an exciting development, no doubt. Yet, it certainly wasn’t Ocean Power Technologies’ first time serving the public defense sector. As CEO George Kirby remarked at the time, his company “has a long work history on Department of Defense projects.”
Of course, this type of work is highly coveted and potentially quite lucrative. And as it turns out, Ocean Power Technologies would continue to serve the nation’s public defense interests in 2020.
One Step Closer
If you’re looking for a company that’s making its mark when it comes to ocean-energy research and innovation, Ocean Power Technologies absolutely fits the bill.
As evidence of this, Ocean Power Technologies recently announced that it’s been contracted by Adams Communications & Engineering Technology (ACET) to conduct a feasibility study in support of the U.S. Navy’s Naval Postgraduate School’s Sea, Land, Air, Military Research (SLAMR) Initiative.
The study’s purpose is to evaluate the PB3 PowerBuoy system in conjunction with an autonomous, offshore 5G communications system. If successful, these systems could provide support to SLAMR’s development of unmanned and robotic systems.
ACET President and CEO Charles Adams clearly sees the potential for offshore-communications innovation with this collaboration. “ACET’s subcontract with [Ocean Power Technologies] brings this potential technology solution one step closer to reality through the SLAMR research initiative,” Adams stated.
Providing ocean-tech solutions for none other than the U.S. Navy is undoubtedly an honor for Ocean Power Technologies.
It can also be quite profitable, so OPTT stock holders are encouraged to stay the course as the share price could soon revisit its prior high.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.